Check out the companies making headlines in midday trading.
3M – Shares of the chemical manufacturer rose 5.5% following the company’s latest earnings report. 3M posted $7.99 billion in revenue, beating analysts’ estimates of $7.87 billion, according to Refinitiv. The company also raised its full-year earnings guidance and reaffirmed its revenue guidance.
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Spotify — The music streaming platform tumbled 14% following weaker-than-expected revenue and guidance. Spotify reported revenue of €3.18 billion, below the consensus estimate of €3.21 billion from analysts polled by Refinitiv. Full-year revenue guidance was also softer than analysts forecasted. The results follow the company’s announcement that it will raise prices for premium subscription plans.
Alaska Air — Shares of Alaska Air shed 12%, even as the airline beat estimates on top and bottom lines for the second quarter. The airline reported $3 in adjusted earnings per share on $2.84 billion in revenue. Analysts surveyed by Refinitiv were expecting $2.70 in earnings per share on $2.77 billion in revenue. The airline’s full-year earnings guidance of $5.50 to $7.50 per share was roughly in-line with the average analyst estimate of $6.65, according to FactSet.
RTX – Shares of the defense contractor sank more than 12% after it disclosed an issue affecting a “significant portion” of its Pratt & Whitney engines that power Airbus A320neo models. Elsewhere, RTX reported second-quarter earnings that topped Wall Street expectations, posting $1.29 in adjusted earnings per share on $18.32 billion in revenue. Analysts polled by Refinitiv called for $1.18 in earnings per share and $17.68 billion in revenue.
F5 — Shares of the cloud software company rallied 5.7%. Late Monday, F5 posted a top- and bottom-line beat in its fiscal third quarter. The company reported adjusted earnings of $3.21 per share on revenue of $703 million. Analysts called for $2.86 in earnings per share and revenue of $699 million, according to Refinitiv.
NXP Semiconductors — Shares rose 4% following the chipmaker’s quarterly earnings announcement Monday after hours. NXP reported $3.43 in adjusted earnings per share on $3.3 billion in revenue. Analysts had estimated $3.29 earnings per share and revenue of $3.21 billion, according to Refinitiv. The company’s projected third-quarter earnings also topped analysts’ estimates.
General Electric — Shares of the industrial giant popped more than 5% to hit a 52-week high after the company posted stronger-than-expected earnings for the second quarter. GE reported adjusted earnings of 68 cents per share on revenue of $16.7 billion. Analysts called for earnings of 46 cents per share on revenue of $15 billion, according to Refinitiv. GE also boosted its full-year profit guidance, saying it’s getting a boost from strong aerospace demand and record orders in its renewable energy business.
Whirlpool — Whirlpool slid more than 3% a day after reporting weaker-than-expected revenue in its second quarter. The home appliance company posted revenue of $4.79 billion, lower than the consensus estimate of $4.82 billion, according to Refinitiv. It did beat on earnings expectations, reporting adjusted earnings of $4.21 per share, higher than the $3.76 estimate.
Biogen — Shares of the biotech company declined 3.8% after its second-quarter earnings announcement. Biogen posted adjusted earnings of $4.02 per share on revenue of $2.46 billion. Analysts polled by Refinitiv anticipated earnings of $3.77 per share and revenue of $2.37 billion. Revenue for the biotech company was down 5% year over year. The company also announced it would slash about 1,000 jobs, or about 11% of its workforce, to cut costs ahead of the launch of its Alzheimer’s drug Leqembi.
Progressive — The insurance company’s shares lost nearly 2% following a downgrade by Morgan Stanley to underweight from equal weight. The firm cited too many negative catalysts as its reason for the downgrade.
MSCI — Shares gained 9% after the company’s second-quarter earnings and revenue came above analysts’ estimates. The investment research company posted $3.26 earnings per share, excluding items, on revenue of $621.2 million. Analysts polled by FactSet had expected $3.11 earnings per share on $602.5 million.
General Motors — The automaker’s stock dipped about 4.5%. GM’s latest quarterly results included a surprise $792 million charge related to new commercial agreements with LG Electronics and LG Energy Solution. Separately, he company lifted its 2023 guidance for a second time this year. GM also reported a second-quarter beat on revenue, posting $44.75 billion compared to the $42.64 billion anticipated by analysts polled by Refinitiv.
UPS – Shares of UPS rose about 1% after the Teamsters union announced a tentative labor deal with the shipping giant on Tuesday.
Invesco — The investment management firm’s shares fell 5% after it posted adjusted earnings of 31 cents per share in the second quarter, while analysts polled by FactSet estimated 40 cents per share. President and CEO Andrew Schlossberg said the company would focus on simplifying its organizational model, strengthening its strategic focus, as well as aligning its expense base.
Xerox – Shares of the workplace products and solutions provider gained more than 7% after the company raised its full-year operating margin and free cash flow guidance. Xerox now anticipates adjusted operating margin of 5.5% to 6%, compared to earlier guidance of 5% to 5.5%. It also calls for at least $600 million in cash flow, compared to its previous outlook of at least $500 million.
Packaging Corp of America — The packaging products company’s stock surged more than 10%, reaching a new 52-week high. In the second quarter, the company posted earnings of $2.31 per share, excluding items, beating analysts’ estimates of $1.93 per share, according to Refinitiv. The company cited lower operating costs from efficiency, as well as lower freight and logistics expenses. Its revenue of $1.95 billion, meanwhile, came below analysts’ estimates of $1.99 billion, according to FactSet.
Zscaler — Shares of the IT security company popped 4.5% after a BTIG upgrade to buy from neutral. “Our fieldwork leads us to believe that demand in the Secure Service Edge (SSE) has sustainably improved and that large projects which were put on hold in late 2022/early 2023 are starting to move forward again,” BTIG said in a note.
Sherwin-Williams – Shares added more than 3% after the company reported record revenue for the second quarter to $6.24 billion. Analysts called for $6.03 billion in revenue, according to FactSet. The company notched adjusted earnings per share of $3.29, while analysts estimated $2.70 per share.
— CNBC’s Yun Li, Samantha Subin, Sarah Min, Tanaya Macheel, Brian Evans and Alex Harring contributed reporting
